Gold Hits New 28 Year Record; No One Notices

I bet you know what Google is trading at these days. Or how about oil? If you watch CNBC, you can see it highlighted in yellow on the upper ticker - as it flashes its new record highs seemingly every day.

What about the price of gold. Do you know what that is?

Ever so quietly, gold has been moving towards its all-time high, around $850 an ounce set the last time crude was at records in the early 1980s.

Coincidence? I think not.

Gold moved as high as $798.30 on Monday- just shy of the important psychological $800 an ounce barrier. It might take several sessions to actually close over that number. But it will eventually take that level and then move even higher.

But if you looked at most of the investing websites such as CBS Marketwatch, CNNMoney or Yahoo Finance, you wouldn’t have known that gold was at another new 28 year high. Nope. You would have had to go to other pages on those sites to seek out the information (for instance- by clicking on the “markets” page on CBSMarketwatch and going to the articles on metals.)

It is a strong bullish indicator that no one cares what gold is doing. When no one cares- sit up and take notice.

Gold is up 20% over the last two months. The gold stocks haven’t been doing quite as well. They are trailing the returns of the actual metal so far this year but they won’t trail it for forever.

Do you know anyone buying gold right now? I don’t. I don’t know anyone even buying the gold stocks. They’re all obsessed with Google, Apple, RIMM and their ilk. Make no mistake, those are all fine companies and have been excellent investments. But an obsession with one sector means that there will be opportunity in another.

When will the markets notice gold? Probably not until it’s over $800 - and then some analysts will be on tv saying it’s a “bubble” or some such hogwash like that (as gold isn’t even close to its inflation adjusted high of the early 1980s- which would be something like $2,000 an ounce.) And then once it’s over $800- everyone will ignore it again.

Because you can’t make any money off of gold, right? It’s been a “dead” investment for 28 years. Or so the “experts” say.

Gold price in 2001= $255 an ounce
Current gold price= $792.60 an ounce

Yep. No one is making any money off of that investment.

Watch gold.

You can buy gold through various ETFs, including tracking the actual metal (ticker GLD) and through the gold miners ETF (GDX)- which also owns a few silver companies for good measure.